Browse Forums Building A New House 1 Jan 25, 2016 6:14 am Good morning everyone! My wife and I have just received a tender quote for a new home, and we spent a few hours last night going through with a fine toothed comb to identify what we finally wanted based on budget and more detailed investigation of upgrades. I was wondering whether you all enter some negotiation in the quoted price? Unlike the car forums I am on there is no "how much did you pay for your XXXX" thread. Is this a done thing or do we all take the price we are quoted? TIA. Sam Re: Negotiating Price on Tendered Quotation 2Jan 25, 2016 7:35 pm Hi, I'm interested to hear what others say but I would absolutely be negotiating on a building quote. I'm assuming this is a new home build not variation works on existing building contract. Have you competitively tendered and obtained multiple quotes for the build? I deal mostly with commercial stuff but equiv process can apply here: 1) competitively tender tour build project (& hopefully receive multiple quotes). 2) Review the quotes - then normalize prices based on scope & conditions YOU actually want (i.e. make sure you compare apples with apples). Typically this will require going back to builder for clarifications. 3) assess and short-list the quotes based on criteria of priority/importance to my you (price/schedule/professionalism/experience/references etc) down to the two best. 4) negotiate factually and firmly with short listed builder(s) to get the best terms/deal you can from them. 5) goes without saying but don't sign contracts without good legal advice upfront. Re: Negotiating Price on Tendered Quotation 3Jan 25, 2016 7:36 pm Hi, I'm interested to hear what others say but I would absolutely be negotiating on a building quote. I'm assuming this is a new home build not variation works on existing building contract. Have you competitively tendered and obtained multiple quotes for the build? I deal mostly with commercial stuff but equiv process can apply here: 1) competitively tender tour build project (& hopefully receive multiple quotes). 2) Review the quotes - then normalize prices based on scope & conditions YOU actually want (i.e. make sure you compare apples with apples). Typically this will require going back to builder for clarifications. 3) assess and short-list the quotes based on criteria of priority/importance to my you (price/schedule/professionalism/experience/references etc) down to the two best. 4) negotiate factually and firmly with short listed builder(s) to get the best terms/deal you can from them. 5) goes without saying but don't sign contracts without good legal advice upfront. Re: Negotiating Price on Tendered Quotation 4Jan 28, 2016 8:20 pm Thanks for the advice, much appreciated. I am engaging with a project builder for a specific house, so not in a competitive tender situation, am interested in anyone experience in their negotiation tactics and what I can effectively leverage? Wow I hadn't realised things had gotten that pricey in just a couple of years since I built, that is crazy with how much land is now costing if you aren't lucky enough to… 3 7102 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35312 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81704 |